LG Electronics reported a 33 per cent year-on-year drop in net profits and a 0.7 drop in consolidated sales – and it was all down to profit declines in the company’s mobile phone business partly offset by strong performances from home entertainment and appliances.

The second quarter to June 30 saw the company notch up sales of Won 14.4 trillion (around £7.9bn) and an operating profit of Won 126bn.

At Won 5.4 trillion, the company’s home electronics operations saw sales push four per cent ahead of those achieved in the previous quarter and as much as 19 per cent up on a year ago. Operating profit for the sector was Won 28bn.

TV proved to be the driving force here, with flat-panel TV shipments up 47 per cent on the same period last year to 6.3 million units.

The company said strong demand, expansion of premium products and the launch of new LED TVs would continue to drive profits for the home entertainment company in the third quarter.

Home appliances also did well showing “consistent positive performance” with 16.5 per cent year-on-year growth. Sales were Won 2.7 trillion and operating profit Won 185bn.

The air conditioning and business solutions businesses also saw year-on-year sales growth, of 0.3 per cent and 14.7 per cent respectively.

However, in the company’s mobile communications business year-on-year sales fell 29.5 per cent. This business made year-on-yeara low not because of the fall in sales but, said the company, to investment in research and development and the expansion of channels in emerging markets.